ACCA FA · Chapter 3 · Question 9 of 10
Which of the following accounts would normally have a CREDIT balance in a trial balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Bank overdraft
Explanation
A bank overdraft is a liability, and liabilities have credit balances. Drawings reduce capital and are a debit, while carriage inwards and discounts allowed are expenses, which are also debit balances.
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